Operator: Good day, everyone and welcome to the SanDisk Corporation's Second Quarter 2013 Financial Results Conference. Today's conference is being recorded.

At this time, I would like to turn things over to Mr. Brendan Lahiff with Investor Relations. Please go ahead, sir.

Brendan Lahiff - IR: Thank you, and good afternoon. With me on the call today are Sanjay Mehrotra, President and CEO of SanDisk; Judy Bruner, Executive Vice President of Administration and CFO.

Before we begin, please note that any non-GAAP financial measures discussed during this call, as defined by the SEC and Regulation G will be reconciled to the most directly comparable GAAP financial measures. That reconciliation is now available along with supplemental schedules on our website at sandisk.com/ir.

Please note that non-GAAP to GAAP reconciliation tables for all applicable guidance will be posted on our website. This guidance is exclusive of any one-time transactions and does not reflect the effect of any acquisitions, divestitures or similar transactions that may be completed after July 17, 2013.

In addition, during our call today, we will make forward-looking statements. Any statement that refers to expectations, projections or other characterizations of future events including financial projections and future market conditions, is a forward-looking statement.

Actual results may differ materially from those expressed in these forward-looking statements. For more information, please refer to the Risk Factors discussed in the documents we file from time to time with the SEC, including our Annual Report on Form 10-K for fiscal 2012 and our subsequent quarterly reports on Form 10-Q. SanDisk assumes no obligation to update these forward-looking statements, which speak as of today.

With that, I will turn the call over to Sanjay.

Sanjay Mehrotra - Co-Founder, President and CEO: Thank you, Brendan, and good afternoon everyone. We are pleased to report record second quarter revenue and strong margin. We made excellent progress with our embedded mobile product portfolio with new design wins and our SSD business gained further momentum. We remained focused on strengthening our product portfolio and our execution in technology transitions remained outstanding. Our second quarter achievements have put the Company on a path to deliver a record 2013.

Our second quarter performance was driven by a strong growth in our mobile embedded products with iNAND and iNAND MCP posting the largest revenue gains during the quarter. Our embedded solutions team has made significant progress over the past year and their efforts to diversify our customer base with an expanded array of compelling solutions is bearing fruit.

Both smartphone and tablet adoption rates continue to be strong in the industry, with the industry analysts forecasting more than 900 million smartphones to ship in 2013. The tablet volume is expected to approach 200 million.

Further, China smartphone OEMs are becoming increasingly important in the global smartphone market, with analyst estimating the top China brands to ship more than 10% of smartphone volume this year. SanDisk has made significant inroads into this growing market with our iNAND and iNAND MCP offerings building further upon our strong presence with global smartphone OEMs.

Transcript Call Date 07/17/2013

Operator: John Pitzer, Credit Suisse.

Michael Chen - Credit Suisse: Hi. This is Michael Chen speaking in for John Pitzer. I just had a question on some of your competitors have stated that samples of 3D NAND could come out as early as end of the year. Your expectations entire line for the production of 3D NAND is quite a bit later. So, I was just wondering I guess can you please explain the difference of the discrepancy?

Sanjay Mehrotra - Co-Founder, President and CEO: As we had described at our Investor Day we are very much focused on continuing to scale NAND from 1Y which we will begin to ramp up in production late this quarter to 1Z technology node which we will begin to ramp up into production late next year early 2015 timeframe and these are technologies that we believe will be the lowest cost technologies in 2014 and 2015 timeframe. Our 3D NAND technology that we plan to bring to production the BiCS NAND technology is a highly scalable and very efficient technology. We will bring it to production in the marketplace we believe in second half of 2015/2016 timeframe because that's when this technology will give us lower cost than 1Z technology. So, our 2D NAND and 3D BiCS technology continues to position us well for cost leadership through – 2D NAND through 2015 timeframe and then with 3D NAND beginning in 2016 timeframe. And I also want to point out that the 3D NAND technology that is being discussed by NAND industry supplier is a technology that is not as scalable not as efficient as our BiCS 3D NAND technology. So, from what has been published in the literature we have studied that technology and we have concluded that it will take two or three generations of that technology before it becomes really competitive with 2D NAND technologies that will be in the marketplace. So, our strategy is very much focused on maximizing the ROI of the technologies and that's why the longer you can go with 2D NAND the better ROI you have, and then once 2D NAND cannot be scaled any further that's when it is the best time to bring 3D NAND technologies. I feel very comfortable with our technologies strategy for the years ahead in terms of cost leadership and continuing to drive our objectives of profitable growth.

Operator: Mehdi Hosseini, SIG.

Mehdi Hosseini - SIG: Sanjay, as you scale the SSD, especially on enterprise side with all investment, how should we think about the software piece of the revenue and would you be able at some point to actually breakout the software from the rest of the revenue mix?

Sanjay Mehrotra - Co-Founder, President and CEO: So, software revenue in the foreseeable future will continue to be small and we do not plan to break it out. Software really is giving us tremendous opportunity to engage in meaningful dialogs with enterprise customers for their future roadmap and software, of course, is giving us opportunities to bring greater value to our customers with innovative differentiated solutions. Our software is something that not only works with our hardware, our enterprise grade hardware drives, but it is also a software strategy that will actually work with other competitors' hard drives as well and that really truly bring strong value proposition to our enterprise customers.